Indonesia shuts down nickel mines after greenpeace uproar

In a rare win for environmental activists, Indonesian President Prabowo Subianto has cancelled the permits of four nickel mining companies operating in the ecologically fragile Raja Ampat archipelago—an area often described as “the last paradise on Earth.”

The decision, reported by the Financial Times, follows a damning investigation by Greenpeace that revealed more than 500 hectares of forest had been cleared across three Raja Ampat islands, triggering soil runoff that threatens the region’s world-renowned coral reefs and marine biodiversity.

“The news this week that the government will cancel four mining licences is a step forward, but it’s not enough,” said Kiki Taufik, head of Greenpeace’s Indonesia forest campaign. “The government has left the door open to polluting nickel mining.”

Raja Ampat, located in Indonesia’s easternmost Papua province, is a Unesco geopark and home to three-quarters of the world’s coral species and around 2,500 types of fish. It’s a prime tourist destination Indonesia hopes to promote as an alternative to overtourism-plagued Bali.

The environmental spotlight intensified last week when Greenpeace activists disrupted a major mining conference in Jakarta, confronting Deputy Foreign Minister Arif Havas Oegroseno with placards reading “Nickel mines destroy lives” and “What’s the true cost of your nickel?”

Following the protest, Prabowo ordered an investigation that led to the cancellation of permits for four companies: Anugerah Surya Pratama, Kawei Sejahtera Mining, Mulia Raymond Perkasa, and Nurham. Among them, Anugerah Surya Pratama is majority-owned by Wanxiang Nickel Indonesia, a subsidiary of China’s Vansun Group.

The Ministry of Environment cited illegal mining in protected forests and pollution, and pledged legal action against some firms. 

“We will not allow an inch of damage to the area that is home to 75 per cent of the world’s coral species and thousands of endemic species,” environment minister Hanif Faisol Nurofiq said in a statement. “Law enforcement and environmental restoration are our main commitments.”

Still, controversy lingers. Energy and Mineral Resources Minister Bahlil Lahadalia dismissed Greenpeace’s claims of reef destruction and said the companies in question hadn’t conducted mining operations this year. A fifth company, Gag Nikel—which continues to operate—was deemed to be located outside the Unesco-protected zone.

Indonesia, the world’s largest producer of nickel, has seen explosive industry growth since banning raw ore exports in 2020. That policy shift brought a wave of Chinese investment in domestic processing, boosting Indonesia’s share of global refined nickel from 6 percent to nearly two-thirds in just a decade.

But critics warn the expansion has come at a steep environmental and social price, including deforestation, marine pollution, coal-reliant smelters, and frequent worker safety violations. Greenpeace has called for a total ban on nickel mining and processing in Raja Ampat, warning that the revoked licences could be reinstated through court challenges, as has occurred in the past.

By Sabina Mammadli